Hi,
This is probably a stupid question but is equity value, the market value of equity and market cap all the same figure?
Thanks,
S
Oct 21, 2009Oct 21, 2009
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Comments (3)
Yes
You need to draw a strict line when you're referring to equity value.
Equity market capitalization, the market value of equity and market cap, as you mentioned, are same concepts. It's simply the product of diluted shares outstanding times the stock price.
But, equity value is something different. It usually has a higher value than market cap, because of the exclusion of some shares that are not traded, such as options, warrants, hybrids and so on.
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